Kanabo, an Israeli medicinal cannabis company, is expecting to become the first cannabis firm to list on the London Stock Exchange.
On the condition that all FCA (Financial Conduct Authority) requirements are met, the company is expecting the IPO (initial public offering) to take place in February this year.
The company finished a two-week virtual roadshow [a series of presentations made to investors ahead of an IPO] on Friday.
Speaking to Cannabis Health, founder and CEO, Avihu Tamir revealed that the it had an over-subscription almost 300 percent higher than its £3.2 million target.
“Everyone was telling me ‘it’s not the US, it’s not Canada, people don’t understand cannabis here. British people are more cautious, more conservative, it will be more challenging’,” Tamir said.
“Perhaps the questions that were asked were different than the questions that you would be asked when meeting US investors – maybe the knowledge base was a bit lower, but other than that interest and the understanding of the potential of the market was totally there.
“Now, what we’re doing this week is sending emails to people to say sorry, but they can only invest half of what they were planning to.”
Kanabo, based in Tel Aviv, has developed the world’s first medicinal cannabis vapourising device, which delivers a metered dose of cannabis extract.
Smoking cannabis flower is a popular administration method for those suffering with chronic pain, however it gives a different dose on every inhale which prevents medical professionals from accepting smoking as a medicinal delivery method.
Kanabo’s VapePod, which can deliver a metered dose has already had initial sales in a pilot in the UK and Germany. They are expecting that the CE mark for the second generation medical device will be given in the first or second quarter of this year.
In Israel, approvals for the device are in the final stages. The vapourising device, which ensures the controlled application of cannabis-based medicines, is approved for use in hospitals and the company has recently embarked on a clinical trial to demonstrate bioavailability and safety.
Up until recently, regulations surrounding the public listing of cannabis firms has been unclear. However, since the FCA released a set of rules in September 2020, cannabis companies were quick to set things in motion.
MGC Pharmaceuticals, which develops and produces phytocannabinoid medications, and Emmac, one of Europe’s largest cannabis firms, are also in the race to list on the stock market in 2021.
Tamir is confident, however, that Kanabo will be the first to hit the milestone.
“It’s more than reasonable that we will be the first, but I do hope we won’t be the only ones,” Tamir said.
“Part of pushing the industry forward is having more and I hope others, like MGC and Emmac, will join very soon.
“Once they [other companies] see the listing, they will start approaching the LSE. Suddenly the UK is a relevant market.
“There is a process of usually six months for doing the listing and the prospectus, so the next peak of companies coming into the LSE will probably be in six months to eight months’ time.”
Tamir believes the IPO (initial public offering) will be a “game changer” for the cannabis industry, which is predicted to be worth billions in Europe by the end of the decade.
“Once you have the public market in a certain country being opened up, you suddenly see the shift in how the cannabis industry is being perceived by decision makers,” Tamir added.
“Once you start to see these [cannabis] companies going to a public market, everything changes and the discussion is different; suddenly […] it’s a legitimate business, it is not a drug anymore. It is a medicine.
“We all know that alcohol and tobacco are not healthy, but they’re totally legitimised because it’s a business. And that’s the change; its the shift in the mindset of decision making. If they think of it as a public company, it’s respectable, it’s something real.”
Medical cannabis cultivation gets green light in Guernsey
Businesses can now apply for a licence to grow high-THC cannabis for medical purposes.
Businesses based in the Bailiwick of Guernsey can now apply for a licence to grow high-THC cannabis for medical purposes.
In a significant step in the development of the island’s emerging cannabis industry, businesses can now apply for a high-THC cannabis cultivation licence following a Memorandum of Understanding (MoU) with the UK Home Office.
Previously only licences to cultivate cannabis for CBD products were available.
According to a Government announcement on Thursday 22 July, applications will be received by the newly formed Bailiwick of Guernsey Cannabis Agency (BGCA), which has been established by the Committee for Health and Social Care.
“Guernsey was one of the first to recognise the potential benefits that cannabis-based products medicinal might bring,” commented Deputy Al Brouard, president of the Committee for Health and Social Care.
“The MoU marks the start of a process that may allow these products to be produced on island for the benefit of patients within the Bailiwick and overseas. The creation of the Bailiwick of Guernsey Cannabis Agency further enhances our robust regulatory system for cannabis cultivation.”
Deputy Neil Inder, president of the Committee for Economic Development added: “Guernsey’s famous growing heritage continues to thrive within this new island industry. The MoU ensures that the Bailiwick can continue to remain at the forefront of a developing sector that provides diversification to our economy, revitalisation of our environment and new opportunities for skills and employment.
“Growers once moved into finance and now finance is moving into growing. The Committee will continue to support the opportunities available in the pharmaceutical industry and I’m very grateful for the effort all parties have made to deliver the long-awaited MoU.”
Report reveals positive outlook for European hemp farmers
Hemp producers are expecting to sell more than 80 percent of their production this year
A new industry report published this week has revealed a positive outlook for European hemp farmers.
The second edition of the Canxchange quarterly benchmark report shows a fairly optimistic outlook from European hemp farmers.
It highlights a number of factors including the “slowdown of the COVID-19 pandemic” and “better visibility due to vaccine programmes that have been implemented across the globe” – giving farmers the confidence to invest in production machinery and materials.
According to the survey, the vast majority of hemp producers are expecting to sell more than 80 percent of their production this year, with 60 percent of participants having already pre-sold the majority of production for the year, and negotiations having already begun for the 2022 harvesting campaign.
It goes on to highlight that the last few months have seen European isolate prices stabilise at €400-500, but that US products that are beginning to appear on the European market continue to put pressure on producers.
The report is part of Canxchange’s strategy to encourage a more transparent and efficient physical hemp market.
The report states: “The minor cannabinoid space is gaining more and more traction as CBD has become a very competitive market and experienced CBD players are looking to diversify into minor cannabinoids which are picking up in popularity.
“CBN and CBC prices remain stable as the supply and demand curve looks stable. Some US products are starting to appear in Europe putting pressure for prices on European producers.”
Read more in-depth coverage of the Canxchange report at Cannabis Wealth
CBD and cannabis in the UK – a few things you need to know
Are you thinking about trying CBD? Here’s a few things you should know.
Are you thinking about trying CBD? Here’s a few things you should know about how things stand in the UK.
Everybody is talking about cannabidiol, it is becoming popular all around the world. However, a lot of people get confused when they hear that CBD comes from the cannabis plant. This causes speculation on whether CBD products are actually legal in the UK.
First of all, to address the question, is CBD legal in the UK?
The answer is yes. But, it is important to be aware of the rules first so that you can enjoy peace of mind and know where you stand.
The legality of CBD products in the UK
Just like in many other countries around the world, CBD products are legal in the UK. Indeed, they are becoming popular too. A product will have to be fit for human consumption in order to be legal. In addition, it cannot contain more than 0.2 percent THC. You can dive into CBD and cannabis resources here.
You will find that a lot of CBD oils and products are going to be sold as supplements. They should not be marketed as a cure to any illness nor claiming to help with any disease.
While there are studies available that suggest CBD can be a good thing for you to take on a regular basis, this is not something that a brand is allowed to market.
THC is illegal
So, are there any CBD products that are illegal in the UK?
The answer is yes. The products that contain THC, which is known as tetrahydrocannabinol, are going to be illegal. The reason for this is, it is the psychoactive cannabinoid, which can make you feel high. It is important to note that THC is called a controlled substance in the UK. This is down to the Misuse of Drugs Act 1971.
Therefore, you want to look for CBD products that are free from THC. This is going to ensure that you can enjoy the product as intended, as well as making sure that you do not break any of the rules or regulations in the UK.
Another thing to consider is that harvesting hemp – you can find out more at 9leafs – for CBD products is currently illegal in this country.
While there is a lot of uproar about this by farmers and there are people that want the law changed, this is how it stands right now. So, as a consumer, you will have to choose imported hemp and ensure that it contains no THC.
Why is CBD popular in the UK?
If you are new to CBD, you may wonder why a lot of people are choosing to take it.
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